Amex Financial Review

[Midwestsho]

Hi all!  First post here.  Popping my Myfico cherry!  Here's the cliff's notes: I'm wondering what the American Express financial review entails and what the "worst" that can happen is. Here's the long drawn out version if you're curious.

I was approved for the American Express Gold about 6 weeks ago.  I have a 650 Fico (from here) on EQ & TU.  I was a little surprised to get the approval but excited nonetheless.  I've been charging the hell out of it.  I have a 5k balance right now and put 2k on it the first two weeks I had it.  I spend a lot of money (on inventory) and I like the points! :-) 

Well today I get a message from the Financial review center and from reading this forum, immediately new what this was about.  I spoke to a lovely lady who asked me a few questions and then asked for the consent form to release tax records.  I explained that this would not be a problem but that there was a caveat. 

I own a few business'.  I just opened a new business early this calendar year that has resulted in my income going up exponentially higher than it was last year, an extra $60,000 this year to be exact.  When I applied for the card I knew about the potential for a FR so I reported my income to be $20,000 higher than the previous year but $40,000 less than I projected to make this year, just to err to the side of caution.  I explained this to her and asked if I could supply bank records to corraborate my increase in income for 2010.  She said that the only way she could take those records would be if the business was under a year old.  I'm a sole proprietorship and I've been in business in one fashion or another for 9 years now so she nixed the bank statement offer but said she would note that. 

I explained to her that I'm vaguely familiar with the FR process and that if there was any chance of the card being closed by the grantor that I'd like to PIF and cancel it right now.  She assured me that they are not looking to close the card; just verify the income and at the very worst, a limit might be placed on the card. 

So, in the experience of others, what happens after/ during a FR?  What was your outcome?  She seemed really nice and the process actually seems to be quite personal so I felt like my appeal wasn't falling on deaf ears. 

Thoughts?  I like my unlimited credit limit.  I rotate about 20k in inventory a month and I'd rather be racking up points on the AMEX doing it.

[Creditaddict]

Another post is just below and that person came out of FR with a 7k hard limit, which from my understanding could be as little as 6 months before they raise that or release it.

Is this the Gold Business Card or Personal Card?

[mross1080]

I just got out of my FR yesterday. The process is actually very simple although I think they go about it wrong. The stress of waiting for the outcome was the only issue. They did except 3 months bank statements and 2 current paystubs. I was given a 6k hard limit and I showed about 21k in deposits in that 3 month period. Good luck just don't let it stress you out. And I actually think I prefer the hard limit. I don't plan on charging more than 6k in a month and I don't have to wonder if a charge is going to be approved.

[Red1Blue]

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@mross1080 wrote:
I just got out of my FR yesterday. The process is actually very simple although I think they go about it wrong. The stress of waiting for the outcome was the only issue. They did except 3 months bank statements and 2 current paystubs. I was given a 6k hard limit and I showed about 21k in deposits in that 3 month period. Good luck just don't let it stress you out. And I actually think I prefer the hard limit. I don't plan on charging more than 6k in a month and I don't have to wonder if a charge is going to be approved.

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How long did it take for you to know the outcome once you faxed your papers to them? Did they ask for tax returns or just statements / pay stubs? Did you have to call them after you fax the information or did they call you back? I faxed mine yesterday. I am not sure if I want to bother calling them or not.

[mross1080]

I didn't have to show taxes only bank statements and pay stubs. I faxed info on fri morning and the women was off till sun. I called Sunday to confirm she got it and she said she didn't faxed it again Sunday and she told me she wasn't able to view any faxes received on a Sunday. She then called me at 11 30 on Monday morning to tell me she got the info and I would here from her in 24 to 48 hours. That night I noticed my account had a limit instead of the no pre set message but still said suspended the next morning tues I got an Amex email stating my hard limit. Still suspended though. I called around 1 and she said she just got into the office and noticed that the computer set my limit apologized for me having to have a FR and unsuspended my account. Supposedly the person that gets your FR is the only one that you can speak to and the only one that can release your account

[Midwestsho]

See ,this is what's odd to me. She just would not accept the financial statements.  She wanted the tax return.  I already faxed in the release.  I'm not bent out of shape.  They're essentially extending me thousands of dollars of credit at any given time with the expectation that I should be re-paying it within a 30 day period so I imagine they want to make sure that I have the means to do so. 

I just hope it comes back without a limit.  I want the points!

[TangMeister]

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@Midwestsho wrote:

See ,this is what's odd to me. She just would not accept the financial statements.  She wanted the tax return.  I already faxed in the release.  I'm not bent out of shape.  They're essentially extending me thousands of dollars of credit at any given time with the expectation that I should be re-paying it within a 30 day period so I imagine they want to make sure that I have the means to do so. 

I just hope it comes back without a limit.  I want the points!

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Amex FRs require the release of 2 years of tax returns directly from the IRS virtually every time it happens.  Some, very, very rarely get away with bank statements and pay stubs, but that is not the norm.  Yours is the normal route. 

If all matches up (or better) with what you've reported to them on your initial application or updated info, then you should be good to go.  It's a pain and intrusive, but part of doing business with them.  I'm sure you'll be fine!

[Midwestsho]

[quote]Amex FRs require the release of 2 years of tax returns directly from the IRS virtually every time it happens.  Some, very, very rarely get away with bank statements and pay stubs, but that is not the norm.  Yours is the normal route. [/quote]

Actually they only wanted one year.  I really wish they would have let me give them bank statements.  You'd think they'd take whatever voluntary information they can get.

Does anyone know how long this takes?  She acnkowledged receiving the tax release Friday and said she would get back to me.  How long does the FR generally take once they have the info?

[mross1080]

I think about 2 weeks in total. They have to wait till the IRS sends them the info. Dont quote me on that though. But I think its around that time frame.

[Midwestsho]

Just an update for anyone who's curious.  The entire process took about 2 weeks.  After it was completed she contacted me and explained that they were imposing a limit of $6500 which would be reviewed for removal in 90 days.  In this economy, no sweat off my back.  They handled the situation very professionally and I'm back to earning my points. :-)